57-28-203. Disclosures to borrower.
A lender shall give a prospective borrower or a borrower the following written disclosures:
(1) at the time the lender provides an application for a reverse mortgage to a prospective borrower: a disclosure that explains any adjustable interest rate feature of the reverse mortgage, including: the circumstances under which the interest rate may increase; any limitation on the amount that the interest rate may increase; and the effect of an increase in the interest rate; and a list of at least five independent housing counselors that includes each independent housing counselor's name, address, and telephone number;
(2) at least 10 days before the day on which a reverse mortgage closes, a disclosure that describes: that the prospective borrower's liability under the reverse mortgage is limited; the prospective borrower's rights, obligations, and remedies that relate to: temporary absences, late payments, and payment default by the lender; and each condition that requires satisfaction of the reverse mortgage; and the projected total cost of the reverse mortgage to the prospective borrower, based on the projected total future loan balance;
(3) on an annual basis, on or before January 31 of each year, a statement that summarizes: the total principal amount paid to the borrower under the reverse mortgage; the total amount of deferred interest added to the principal; and the outstanding loan balance at the end of the preceding year; and
(4) if applicable, at least 25 days before the day on which the lender adjusts the interest rate on a reverse mortgage, a disclosure that states: the current index amount; the publication date of the index; and the new interest rate.